Seeking Tax Advisor - 4-Unit Oakland Sale / 1031 or ...

Seeking Tax Advisor - 4-Unit Oakland Sale / 1031 or DST Strategy + NY ResidencyHi BP community,I’m looking for a real estate-savvy CPA or tax advisor—or anyone experienced with long-term income and legacy planning strategies.I’m selling a non-owner occupied 4-unit property in Oakland, CA while currently maintaining New York residency, and I’d like to:Defer capital gains taxesPreserve assets for my childrenUtilize a 1031 Exchange via Delaware Statutory Trust (DST)Explore Qualified Opportunity Funds (QOFs)Get guidance on CA-to-NY residency tax implicationsIf you’ve worked with someone knowledgeable—or have insights to share—I’d really appreciate it.This is right in my wheelhouse — feel free to reach out if you want to discuss any of this more deeply.Note: California doesn’t fully conform to federal §1031 exchange rules, especially for exchanging CA property for out-of-state property like a DST. Even if you do a valid federal 1031 exchange into a DST, CA will track the deferred gain and may tax it later, even if you’re no longer a CA resident when the replacement property is sold. CA requires filing Form 3840 annually until the gain is recognized or the property is sold.Additional considerations include:DSTs are passive and qualify for 1031, but you give up control.QOFs allow deferral of gain and offer long-term tax-free growth, but may not suit every situation.The gain from your Oakland property is California-sourced, so CA has priority on taxing it. As a NY resident, you'll report it to NY as well, with potential credit for CA taxes paid.A 1031 into a DST can be effective for generational planning, especially since DST shares are inheritable with a step-up in basis. Alternatively, recognizing gain now and investing more flexibly might be beneficial for long-term wealth transfer.Let me know if you'd like to model some scenarios — I love this stuff and am happy to help behind the scenes.Since you mentioned selling a 4-unit in Oakland, be aware of CA’s specific rules on out-of-state exchanges and annual filing requirements.It’s advisable to assemble a team including a qualified intermediary, estate planner, and tax professional to optimize your strategy.Feel free to reach out for further discussion. #J-18808-Ljbffr

Created: 2025-09-17